Copper hits one-week low as Middle East escalation clouds growth outlook
By:EconomicTimes
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Copper prices fell to a one-week low on Thursday, as renewed tensions in the Middle East pushed the dollar and oil prices higher, fuelling inflation and slowdown concerns.
The most-traded copper contract on the Shanghai Futures Exchange was down 1.1% at 103,830 yuan ($15,316.31) a ton, its lowest level since May 20.
The U.S. military carried out new strikes targeting an Iranian drone operation that posed a threat to U.S. forces and commercial shipping in the Strait of Hormuz, a U.S. official said, hours after President Donald Trump dismissed an Iranian report of a deal to restore traffic through the strategic waterway.
The U.S. dollar index climbed to a near one-week high, making greenback-priced commodities expensive for other currency holders.
"Dollar at highs and an impasse in Hormuz that saw U.S. attacks isn't helping sentiment," independent metals trader Tai Wong said, adding that he expects base metal prices to "continue to trade sideways pending a durable Hormuz outcome."
Crude oil prices also rose following the U.S. military action. Higher energy prices have dimmed the outlook for metals due to the risk that an energy shock could squeeze global growth and manufacturing.
Meanwhile, depletion of available copper stocks in LME-registered warehouses continued, while COMEX copper stocks saw further inflows.
Three-month aluminium on the London Metal Exchange fell 0.5% to $3,619 a metric ton, its lowest level since May 21.
Pressuring prices, the September alumina futures on the Shanghai Futures Exchange fell 0.4%, after hitting a one-month high in the previous session.
Elsewhere on the LME, zinc fell 0.2%, lead was down 0.4%, nickel lost 0.8% and tin edged 0.1% lower. Zinc was at an over two-week low, while lead hit one-week low.
Among other SHFE metals, aluminium fell 1.1%, zinc was down 0.7%, lead lost 1%, nickel fell 1.1% and tin lost 1.1%.
($1 = 6.7820 Chinese yuan)
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Three-month copper on the London Metal Exchange was down 0.1% at $13,514.50 a metric ton, as of 0300 GMT, after falling to its lowest level since May 21 earlier in the session.
The most-traded copper contract on the Shanghai Futures Exchange was down 1.1% at 103,830 yuan ($15,316.31) a ton, its lowest level since May 20.
The U.S. military carried out new strikes targeting an Iranian drone operation that posed a threat to U.S. forces and commercial shipping in the Strait of Hormuz, a U.S. official said, hours after President Donald Trump dismissed an Iranian report of a deal to restore traffic through the strategic waterway.
The U.S. dollar index climbed to a near one-week high, making greenback-priced commodities expensive for other currency holders.
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Crude oil prices also rose following the U.S. military action. Higher energy prices have dimmed the outlook for metals due to the risk that an energy shock could squeeze global growth and manufacturing.
Meanwhile, depletion of available copper stocks in LME-registered warehouses continued, while COMEX copper stocks saw further inflows.
Three-month aluminium on the London Metal Exchange fell 0.5% to $3,619 a metric ton, its lowest level since May 21.
Pressuring prices, the September alumina futures on the Shanghai Futures Exchange fell 0.4%, after hitting a one-month high in the previous session.
Elsewhere on the LME, zinc fell 0.2%, lead was down 0.4%, nickel lost 0.8% and tin edged 0.1% lower. Zinc was at an over two-week low, while lead hit one-week low.
Among other SHFE metals, aluminium fell 1.1%, zinc was down 0.7%, lead lost 1%, nickel fell 1.1% and tin lost 1.1%.
($1 = 6.7820 Chinese yuan)
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .live_stock p a{color: #fff;;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
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